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Ford’s love affair with EVs softens as profitability and consumer trends take focus

Credit: Ford Motor Co.

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Update: headline updated to show Ford is still committed to EVs, just at a less intense rate.

Ford’s love affair with EVs is softening, the automaker announced today, as it shifted plans for its next few vehicles to be hybrid-electric instead of fully electric.

The move comes as profitability and consumer trends are taking focus. Ford has struggled to get its head above water in terms of making money on its EVs, scaling back its investment amount on one occasion and adjusting its strategy on another.

Consumers are also showing more interest in hybrids than pure EVs. Studies have shown that hybrid drivers are among the most satisfied on the road, as a recent survey from ACSI displayed increased satisfaction from those drivers over pure EV and gas engine owners.

Ford is taking steps to pull back from its increased focus on EVs and instead go into a new direction. “We’re committed to creating long-term value by building a competitive and profitable business,” Ford’s Vice Chair and CFO John Lawler said. “With pricing and margin compression, we’ve made the decision to adjust our product and technology roadmap and industrial footprint to meet our goal of reaching positive EBIT within the first 12 months of launch for all new models.”

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How is Ford’s Strategy Changing?

Ford’s new strategy will see its next three-row SUVs utilize hybrid technologies. It also wants to adjust the speed at which electric vehicle models are released, hoping to be more aligned with customer adoption instead of keeping pace with industry leaders.

Tesla sells well, but Ford, even though it has been the number two brand in the U.S. for EVs, has not been able to keep pace. Tesla, simply put, is head and shoulders above everyone in the market when it comes to reliability, tech, and charging infrastructure. Although Ford has adopted Tesla’s North American Charging Standard (NACS) and gained access to the Supercharger Network, consumers still lean toward the Model 3 and Model Y, two vehicles that have dominated the market for the past several years.

Ford is taking a $400 million non-cash charge for the write-down of certain product-specific manufacturing assets for all previously planned all-electric SUVs. The company will no longer build these models, it said.

Focus on Commercial EVs

Ford will still be building EVs, but its entire game plan will be shifting significantly. Ford’s next-gen EVs will be built at the Ohio Assembly Plant in 2026 and will start with a commercial van.

The E-Transit will still be produced, as it is the best-selling commercial EV van in the country. It also helps business owners keep their bottom line as it has positive impacts on the total cost of ownership.

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A New, Low-Cost, High Efficiency EV

Ford will bring a new mid-sized EV pickup to market in 2027 with more range, utility, and useability. It will be the first vehicle that comes as a result of the platform developed by the Ford Skunkworks team that the company established in 2022.

The platform developed by the Skunkworks team will yield more EVs in “multiple vehicle styles” and is designed to scale quickly thanks to its “minimal complexity.”

A new Electric Truck

Ford’s F-150 Lightning was the best-selling EV truck for several months, although Cybertruck overtook it in June. Ford planned to bring a new truck to market next year, labeling it the “T3.” However, this has been pushed back.

Ford Project T3 – its next-gen pickup- is coming in 2025

Ford will now bring the T3 pickup to market in the latter half of 2027. This will offer more features and experiences than any other Ford truck, including upgraded bi-directional charging and advanced aerodynamics. It will be built at the BlueOval City Electric Truck Center in Tennessee.

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Overall, Ford’s shift in strategy is probably for the better, considering its business was quite literally hemorrhaging money. It is important that it develops and builds EVs, as many customers are still in the market for one and now prefer that powertrain to any other.

However, in the grand scheme, hybrids have taken over as the most desirable powertrain, which is pushing Ford to make this shift in the name of making money and going with what consumers want.

I’d love to hear from you! If you have any comments, concerns, or questions, please email me at joey@teslarati.com. You can also reach me on Twitter @KlenderJoey, or if you have news tips, you can email us at tips@teslarati.com.

Joey has been a journalist covering electric mobility at TESLARATI since August 2019. In his spare time, Joey is playing golf, watching MMA, or cheering on any of his favorite sports teams, including the Baltimore Ravens and Orioles, Miami Heat, Washington Capitals, and Penn State Nittany Lions. You can get in touch with joey at joey@teslarati.com. He is also on X @KlenderJoey. If you're looking for great Tesla accessories, check out shop.teslarati.com

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Tesla appears to be mulling a Cyber SUV design

In a new video titled “Sustainable Abundance,” Tesla was showing the Cybercab clay models being autonomously molded. In the back, there are very clearly several models of a Cybertruck-inspired SUV:

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Credit: Tesla

Tesla appears to be mulling a Cyber SUV design, which would encapsulate the stainless steel exoskeleton of the Cybertruck but with elements of an SUV.

The company has been hearing from consumers and fans for some time that it is in need of a full-size SUV in its lineup.

Tesla is missing one type of vehicle in its lineup and fans want it fast

The Model X is more compact than what people are looking for, and although the company has said its focus for some time would be on developing affordable models and the Cybercab, which only enables two-passenger travel, it appears that it may be considering other options.

In a new video titled “Sustainable Abundance,” Tesla was showing the Cybercab clay models being autonomously molded. In the back, there are very clearly several models of a Cybertruck-inspired SUV:

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This would not be the first time Tesla has placed projects it is developing in the back of a promotional video, as it did something similar when it was unveiling the improvements it made to the new Model Y earlier this year.

It appeared to show two new body styles sitting in the back under car covers:

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There are two things that could prevent this from becoming a future, developed product that reaches the market. One of them seems to be a definitive no, but Tesla’s plans could certainly change, especially given the strong push from fans for this type of vehicle.

Tesla said it wouldn’t build a Stainless Steel exoskeleton vehicle again

Tesla said in its Q4 2024 Shareholder Deck that Cybertruck’s stainless steel exoskeleton would not be used in future vehicles in the top line:

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This seems like a definitive no in terms of developing an SUV based on Cybertruck’s aesthetics. However, that could always change.

Tesla’s main focus in autonomy currently

Developing an SUV of this size has been previously dismissed by Tesla, as its focus is on autonomy, AI, and robotics. However, it will still need to develop attractive and useful vehicles that address a large market, and the United States has a strong affinity for SUVs and crossovers.

It seems totally feasible that Tesla could bring this type of vehicle to market to appease the many fans who have called for the company to build it. Tesla has not committed to anything at this point, which is the most important thing to remember.

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Tesla receives European Ecolabel (EMAS) seal for Giga Berlin-Brandenburg

The EMAS seal highlights Tesla’s existing environmental measures in the facility.

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Credit: Tesla/X

Tesla has been awarded the European Ecolabel (EMAS) seal for Gigafactory Berlin-Brandenburg. 

The EMAS seal highlights Tesla’s existing environmental measures in the facility, such as extensive reforestation efforts and reduced water usage. It also emphasizes Tesla’s commitment to improve its environmental initiatives.

Giga Berlin’s environmental initiatives

The EMAS (Eco-Management and Audit Scheme) seal is a long-term environmental management system that focuses on compliance with regulations and improving environmental performance, as noted in a Tagesspiegel report.

Plant manager André Thierig noted that Tesla has already planted over 2 million trees to replace the trees that have been felled to make way for Giga Berlin. Tesla is also targeting an additional 5 to 15 MW peak solar capacity this year to make the plant more sustainable. “We will continue to promote photovoltaics in the future,” he said.

Giga Berlin’s consumption and energy use

In 2024, Giga Berlin consumed about 419,503 MWh of energy, with electricity accounting for more than half, followed by natural gas. The facility is looking to lower natural gas use by redirecting the use of process heating water via waste heat. Water consumption was listed at 2.16 cubic meters per vehicle, significantly below the industry average of 3.5.

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This year, Tesla Giga Berlin is looking to recycle 90% of the Model Y plant’s process wastewater. Around 11,000 employees currently work at Giga Berlin, which produces 5,000 vehicles per week or roughly 250,000 units annually.

Certification welcomed but not without criticism

The EMAS program requires companies to disclose resource use, emissions, and improvement plans. Over 40 companies in Brandenburg have EMAS certification.

Brandenburg’s Environment Minister Minister Hanka Mittelstädt (SPD) described Tesla as a role model for the region. “Everything is public, and that also creates a certain amount of trust,” she said, noting that Tesla is a “beacon” in the industry.

Monique Zweig, Managing Director of the East Brandenburg Chamber of Industry and Commerce (IHK), shared her optimism in a comment to rbb24. “At Tesla, you can see that climate goals go hand in hand with industry,” Zweig stated.

Unsurprisingly, local activists expressed skepticism. The Association for Nature and Landscape in Brandenburg, which is against Tesla, questioned whether the certification could be used as “greenwashing.”

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The group also alleged that the certificate could pave the way for weaker oversight for the EV maker. “The seal is ‘greenwashing’ to portray the company as more environmentally friendly,” spokesperson Steffen Schorcht noted.

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I traded my ICE vehicle for a Tesla Model Y: here’s how it went

After working at Teslarati for six years and covering the EV space nearly every single day (I recently published my 5,000th article on here), I figured it was time to make a switch.

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I recently decided, after a variety of things, that I was going to trade in my internal combustion engine (ICE) vehicle for a new Tesla Model Y. It was a long time coming.

After working at Teslarati for six years and covering the EV space nearly every single day (I recently published my 5,000th article on here), I figured it was time to make a switch. Over the past few years, there have been days when I would have been better off with an EV, but my Summer and Winter activities, as well as the price, kept me from making the switch.

Recently, I decided that it was time. My 2021 Ford Bronco Sport had been experiencing a number of issues, none major, but numerous sensor replacements. It was an affordable and fun car, but after fixing the Tire Pressure Monitoring System in the front right tire, an EVAP switch valve in the motor two months ago, and some other things, the Bronco became more of a chore (and a drain on my wallet) than anything.

With the timing of the $7,500 tax credit expiring and a substantial amount of positive equity in my Bronco, I knew it was time. My experience was excellent, but I would like to share some insights with our readers about the entire process, which may also help you make the jump. Others were more of a one-time thing, as they were things customers would only deal with as the tax credit went away.

My Decision

I knew I was going to get a Tesla, and my inability to enjoy a good sedan steered me to a Model Y (no hate toward the Model 3, it’s just not for me). I knew with the weather in Pennsylvania, all-wheel drive was a need, and the price difference between the rear-wheel-drive and AWD configurations of the Y made it a no-brainer.

Plus, I really would like to get this thing out on the beach, something I’ve done every Summer since buying the Bronco with my Fiancè.

I actually ordered this car back in June, but ended up canceling the reservation to wait until the end of Summer. I ended up ordering the car I took delivery of on Saturday back on my birthday on August 16.

I was looking for Diamond Black with White Interior, and it was available in Pittsburgh for delivery. However, I really love the team at Tesla Mechanicsburg, so I opted to do a Black on Black Model Y that was a Fremont build, so I could pick it up from the guys up there. The interior color was not a dealbreaker for me. I just wanted to take delivery soon.

I ordered from inventory, which is not something that is possible now. There is no new Model Y inventory within 200 miles of me, a good sign for Tesla but a bad sign if you’re looking to buy something before the quarter ends. Luckily, the IRS is allowing people to enter an agreement for a car, so you could technically build the car of your choice, put a down payment on it, and take delivery after the September 30 cutoff.

Tesla Delivery Day

My appointment was at 12 p.m. and I arrived about ten minutes before. The team greeted me quickly, and I was able to walk right up and see my car with my name on it. It was pretty incredible and a feeling I have not felt in a long time. I’ll be honest, when I bought the Bronco, I never thought I’d own one. When I got one, it felt pretty surreal.

I felt that way yesterday. It was really cool to finally buy a car that I’d only dreamed of owning. It’s not the only car I dream of owning in my lifetime, but it is one I knew I wanted right now. Now that I was showing up to buy it, it really felt surreal.

The process was really fast and efficient, and I could have been in and out in ten minutes if I wanted to. However, I hung around and talked to the guys there; they discussed some good accessories I should consider and suggested some tint.

I was on my way.

My First Drive and What to Expect

I stopped by my Fiancè’s work, showed her the new ride, brought her some lunch, and headed home to my pup. So far, I’ve driven about 60 miles, with most of it being done manually and about 10 miles using Full Self-Driving. I’ve enjoyed driving it myself so much as of right now, but I know FSD will come in handy plenty in the coming months.

In the future, I plan to explore a wide range of topics as an owner. I do not currently have home charging, which is something that many people believe is a dealbreaker for owning an EV. I have two Superchargers very close to my place, so I’m not too concerned about it.

I have been in touch with my leasing office about installing a charger or chargers for the past few months, which seems like it could happen early next year.

So far, I’m really happy with how everything has worked out.

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